Essential Theories of Organizational Behaviour

Question: Discuss about the Essential Theories of Organizational Behaviour. Answer: Introduction: This assignment defines the scenarios that are possible once the announcement happens about shuffling the IT outsourcing of OG Company of Malaysia into an in sourcing. The in sourcing branch is set to be in Bangalore. OG is an oil and gas company based in Malaysia. It is one of the top OG companies globally and comes at the fifth position in terms of revenues. It houses more than 2,000 staffs and comes at the second spot only after Manila in groups OG Business. Service centre is the resource of providing general business support with services to OG operations. It also provides solution to other business activities such as HR services, contracting procurement, downstream customer service centre and communications production. With the sudden announcement about the transition of the Company from outsourcing to in sourcing in Bangalore, a sense of fear had started taking its root into its employees. Loyal employees of the organization who served this organization for as long as 15 years have all started shattering for the unwanted facts. This essay consist the case study followed by a literature review on the issue supported by various theories such as Kurt Lewins theory, John Kotters model and Abraham Maslows theory. Moreover, analysis of the issue comes after the literature review. Based on the reviews, some recommendation for the OG, Malaysia is also made. The OG, which has its own IT hub as an outsource is scheduled to give it a complete makeover to an in source IT hub in Bangalore with approximately 2,000 employees. It is set to be a giant hub offering various operational supports and services to OG. The planning behind the set up is to maintain the optimization of various IT staff footprint such as suppliers, staffs, locations, reduce costs and reposition project delivery (Oilandgasinsight.com, 2016). The company is opening its IT in sourcing in Bangalore on destroying the pre-existing outsourcing in Malaysia. Moreover, this is going to affect almost 1,500 staffs and contractors and make them redundant. Many employees have worked for this organization for even more than 15 years with their utmost dedication. At some point of time, they had thought of getting their resignation in the organization itself but the shifting of the IT resourcing to Bangalore has left them with no clue whatsoever (Gu and Wang 2015). It has affected the morale of the employees and they are struggling to accept the change. They are taking this transition as a personal as a proper communication missed at the time of the announcement in themed of the year. Nonetheless, the employees are psychologically affected (Oilandgasinsight.com, 2016). Literature Review Change is defined as external factors that are more situational (Robbins and Judge 2012). Moreover, a change in the organization never happens for any personal reason rather it happens for the betterment of the organization. A transitional process, the other side, is completely different to the change process. Transition is an internal process, which is taken into consideration to maintain the healthy competition among the competitors (Wagner III and Hollenbeck 2014). In such process, employees those who are older in the organization fail to understand the process and are find themselves clueless about what has prompted the organization to go with the decision (Robbins and Judge 2012). It then becomes the responsibility of the organization to help its existing employees with all the required communication during the transition process to bring it efficiently (Kramer 2014). The figure depicted below differentiates the change from the transition very efficiently. Kurt Lewin proposed a model to define the change transition process, which is known as the Lewins model. This model is still very helpful and practiced widely today. It is a very easy model to understand and implement the changes required for the transition of the company. It follows the concept of an ice cube, which on melting becomes a liquid. It is subjected to a change on a certain parameter. Moreover, it again resolidifies and refreezes back into a cone of ice under given circumstances. An organization, which understands the three stages involved in Kurt Lewins Model, can very well manage its transition process (Langton, Robbins and Judge 2013). The organization can start by preparing the ground for unfreezing stage by letting their employees realized about the importance of transition (McShane and Von Glinow 2015). Employees are first required to be motivated towards the change that is bound to happen because of the circumstances, which the competition market had created. Proper and fair communication is very important and holds its own place while making such a big decision. An organization can turn things into their favour by only communicating with its employees properly (Rashid, Nordin and Salleh 2014). A proper communication along with the necessity of the change prepares the ground for the change. Moreover, it resembles the Unfreeze stage of the Lewins model based on a cone of ice. Once the ground has been set for the change, employees are required to encoura ge on their support and services to the organization. Moreover, this gives a space for the change and prepares the final platform. Once the final platform is achieved, a transitional change becomes very handy. Moreover, the final stage resembles with the Refreeze stage of the Lewins model (Wagner III and Hollenbeck 2014). The worldwide reputed John Kotter for its expertise and skills in business change process had addressed the 8-steps change process to define the change process in organizations. Kotters 8-steps model defines the importance of ground preparation for the change to occur. Moreover, the model emphasises on winning the hearts of employees before bringing any change in the organization by properly communicating with employees. Kotters 8 steps model clearly reveals facts that most predominantly resembles the Lewins change stage. First four phases of Kotters model resembles the Lewins unfreezing stage. It support the facts of preparing ground for the change. The next three stages of the kotters model resembles with the change state of the Lewins model. Moreover, the final and the eighth step of Kotts model validate the refreezing stage of Lewins model. It supports the importance of resolidifying of the organization with the proposed change. Nonetheless, it retains the pre-acquired reputation of the organization. Motivation Innovative minds always keep space for a change that is needed for an organization to take a big decision such as a transitional process (Nahavandi et al. 2013). Maslows motivational theory signifies the importance of innovation in an organization and effectively carves way for an organization on how to achieve the required changes (Pinder 2014). According to Maslow, motivating an employee involves five important factors that are the main highlights of the theory itself. Imparting physiological needs with security and safety are the two most important and an integral aspect of any organization, which encourages employee to have motivational thoughts into them (Miner 2015). Physiological needs may contain the announcement of certain rewards such as salaries given for those months that have no work at all. Moreover, during the transition period, there is hardly any job for the existing employees and salary given for those periods is not less than any reward for them for their entire support and services to the organization (Mansor 2013). Moreover, the additional benefits motivate employees for their bright future and compel them in favour of the decision made (Miner 2015). As per Maslows theory, once the physiological needs are achieved, focus is required to shift on the safety of employees. As per the theory, the safe and secu re environment keeps employee motivated until their last day in the organization. Employees faith and love towards its organization make things easier for the organization to make any unwanted decision by the Company. Moreover, employees need love and caring from the organization, they are serving for years. Moreover, providing love and affection to employees keep them motivated throughout the transitional change in the organization (Romle, Talib and Isa 2016). In the final stage, as per the hierarchy, a realization of self-esteem and actualization imparted to the employees hold its own importance. Until and unless an employee is not aware of the fact that the one is worth for the organization, it does not encourage them for the motivation (Miner 2015). It then becomes necessity for an organization to impart the feeling of self-esteem into their employees. Moreover, self-esteem and self-actualization keeps an employee motivated until the end of the transition process (Miner 2015). Change Management As per the case study, the transformational team understand the importance of a proper communication with their employees (McShane and Von Glinow 2015). Moreover, they are prioritizing motivational thoughts in their employee. It is evident that a proper communication is very much required in bringing the transition process and in spite of that the OG Company still went ahead to announce the change in the middle of the year 2015 itself (Rashid, Nordin and Salleh 2014). The sudden announcement has created a sense of fear into the employees and left them with no clues at all. Moreover, it created the sense of redundancy into them initially but the management then realized the mistake and made an improved communication later this year that has sorted things out (Robbins and Judge 2012). As per Lewins model, the unfrozen stage in the OG Company has created the sense of fear into its employees but a proper and continuous communication by the transformational team has bettered the situation (Romle, Talib and Isa 2016). The transformational team forgot to prepare the ground for the proposed change and incautiously went on to announce the decision without having any measure of that. Appreciably, the management had realised the mistake and came up with the solution until the end of the year 2015 (Ahmad, De Brito and Tavasszy 2015). A better communication then made its employees bit aware of the reason for the changes. The management team took different initiatives then to boost the morale of their employees by keeping them motivated as per the Maslows motivational theory. These steps have created the change stage for the OG Company of Malaysia resembling to the Lewins model. As per Lewins Refreezing stage, the OG Company is assuring every possible bit to stop their employees going back again to their past (Saad, Mohamed Udin and Hasnan 2014). Moreover, keeping the past into mind never allows any space for the required change. Transition of the IT hub of the OG Company of Malaysia to Bangalore depends more on its employees. It needs its employee support to the fullest to go through with the process and the management team are doing just accordingly. They have realized their mistake and have improved their communication with its employees. Distribution of salaries for three consecutive non-working months to come is nothing but just specify the rectification that the management team has made to make communication better among employees (Mansor et al. 2013). Motivation To ensure the transitional process with its utmost success, the OG Company brought its focus back on to the Abraham Maslows theory and started fulfilling the need of their employees at different levels (Rui et al. 2016). As per the theory, employees are required to satisfy in their basic physiological needs. Understanding the importance of this in favour the Companys decision, the management team announced about giving salaries for the three months consecutively without demanding any job from them for the same period whatsoever. Assurance is made to employees regarding the payment of salary for the three consecutive non-working months as a reward (Nordin, Vassekaran and Grover 2014). To eliminate the sense of fear out of the employees mind, the OG Company continually focussing on rewarding the individuals for their achievements. Assurance of distributing three months salary for non-working months into the employees of the OG Company is helping in keeping them motivated until the full process of transition. After meeting with the physiological needs, the management team is bringing its focus on the next level of the Maslows theory. This level defines the importance of security and safety provided to the employees within the organization. Environments are keeping employee friendly with their proper physical safety until the process gets end. Moreover, efforts are given to keep employees motivated throughout the entire transition process. Speeches from the Companys expert are helping in motivating employees by the narration of their own experiences through such a circumstances as that of now in the Company (Chudzicka 2013). Regular sessions conducting various social activities such as team buildings, lunch and learn sessions and board games are keeping employees engaged within the Company. Moreover, it is providing the belongings of their relations with the organization throughout the entire transition process (Ahmad and Rezaei 2013). Imparting love and affection to the employees forms the next level of the Maslows theory and the management of the OG Company is very well managing that. Moreover, employees are being encouraged for their support and services to the company, which in return keeping employees motivated. To generate the self-realization towards the change with the sustenance of self-respect are the key highlights of the Companys management team (Bairi, Murali Manohar and Kundu 2013). They are continuously maintaining the self-felicitation process for the irrespective of the ac hievements the employees have garnered. After achieving all these levels, self-respect comes at the next level of the theory. The Company maintains transparency in their approach with all the organizational values displayed to uplift the importance of self-respect to its employees. The last level that comes in the theory is self-actualization. The Company maintains the self-actualization into its employees by continuously arranging training for the employees to nourish employees, which can open up various new options for them outside of the Company. Conclusion Change is an inevitable process that has no stoppages in todays scenario of continuous business change. To stay in the business competition, shuffling with the ever-changing business requirement is of utmost requirement. It sometime involves decisions that are hard to accept for the masses. Riding on the same concept the OG Company of Malaysia realizes the significance of the shifting of the outsource centre into the in source in Bangalore. The sudden announcement of the concept brought havoc in between the employees. Those who were older in the organization and had served the organization for fifteen long years started developing a sense of fear into them. The OG Company should put efforts on making the communication transparent with their employees. All of a sudden, they made the announcement in the middle of the year without making any prior communication within their employees. The OG Company should encourage the feeling for a new job once the shifting takes place. Employees should be given proper training on technical expertise that would be required for a new job. Incepting the knowledge skill is very much required for those who search for a new job. 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